KUALA LUMPUR: Magma Group Bhd has announced a string of proposals to strengthen its financial position and expand property development portfolio.
The key proposals include a RM380.0 million capital reduction and an acquisition of a 0.92 hectare land in the sought-after Persiaran Dutamas area here.
Magma said the moves are part of Magma's ongoing effort to position itself for sustainable growth and enhance shareholder value.
The proposed capital reduction will see Magma reduce its issued share capital by up to RM380.0 million.
"This action is intended to eliminate accumulated losses and improve the company's balance sheet, which in turn will provide the financial flexibility to support future growth initiatives," it said.
In addition to the capital reduction, Magma proposes to acquire a 0.92ha in Persiaran Dutamas for RM80 million.
The land, which has received approval for a mixed-use development comprising service apartments and commercial spaces, presents a strategic opportunity to expand Magma's property portfolio.
"The acquisition will be financed through a combination of RM8.0 million in cash and the issuance of 120.0 million new ordinary shares, along with redeemable non-convertible preference shares (RPS)," it said.
Its group managing director Datuk Seri Thomas Liang Chee Fong said the proposed capital reduction will allow the company to reset its financial foundation.
Liang said the acquisition of the Dutamas land represents a significant milestone for our property division.
"With its prime location and approvals in place, this acquisition will enhance our property development pipeline and contribute to the company's long-term growth strategy."